Attached files
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| 8-K - FORM 8-K - COSTCO WHOLESALE CORP /NEW | d640205d8k.htm |
Exhibit 99.1
| News from |
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COSTCO WHOLESALE CORPORATION REPORTS FIRST QUARTER FISCAL YEAR 2014 OPERATING RESULTS
ISSAQUAH, Wash., December 11, 2013 - Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) announced today its operating results for the first quarter (twelve weeks) of fiscal 2014, ended November 24, 2013.
Net sales for the quarter increased five percent, to $24.47 billion from $23.20 billion during the first quarter last year. Comparable sales for the first quarter of fiscal 2014 were as follows:
| 12 Weeks | ||||
| U.S. |
3 | % | ||
| International |
1 | % | ||
| Total Company |
3 | % | ||
Comparable sales for the twelve-week period, excluding negative impacts from gasoline price deflation and foreign exchange, were as follows:
| 12 Weeks | ||||
| U.S. |
4 | % | ||
| International |
6 | % | ||
| Total Company |
5 | % | ||
Net income for the quarter was $425 million, or $.96 per diluted share, compared to $416 million, or $.95 per diluted share, last year.
Costco currently operates 648 warehouses, including 461 in the United States and Puerto Rico, 87 in Canada, 33 in Mexico, 25 in the United Kingdom, 18 in Japan, 10 in Taiwan, nine in Korea and five in Australia. Costco also operates electronic commerce web sites in the U.S., Canada, the United Kingdom and Mexico.
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A conference call to discuss these fiscal 2014 first quarter operating results is scheduled for 8:00 a.m. (PT) today, December 11, 2013, and is available via a webcast on www.costco.com (click on Investor Relations and “Play webcast”).
Certain statements contained in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For these purposes, forward-looking statements are statements that address activities, events, conditions or developments that the Company expects or anticipates may occur in the future. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. These risks and uncertainties include, but are not limited to, domestic and international economic conditions, including exchange rates, the effects of competition and regulation, uncertainties in the financial markets, consumer and small business spending patterns and debt levels, conditions affecting the acquisition, development, ownership or use of real estate, amounts expected to be spent on expansion plans, actions of vendors, rising costs associated with employees (including health care costs), energy, and certain commodities, geopolitical conditions and other risks identified from time to time in the Company’s public statements and reports filed with the Securities and Exchange Commission.
| CONTACTS: | Costco Wholesale Corporation | |
| Richard Galanti, 425/313-8203, Bob Nelson, 425/313-8255, Jeff Elliott, 425/313-8264 |
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COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(dollars in millions, except per share data)
(unaudited)
| 12 Weeks Ended | ||||||||
| November 24, 2013 |
November 25, 2012 |
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| REVENUE |
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| Net sales |
$ | 24,468 | $ | 23,204 | ||||
| Membership fees |
549 | 511 | ||||||
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| Total revenue |
25,017 | 23,715 | ||||||
| OPERATING EXPENSES |
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| Merchandise costs |
21,824 | 20,726 | ||||||
| Selling, general and administrative |
2,501 | 2,332 | ||||||
| Preopening expenses |
24 | 18 | ||||||
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| Operating income |
668 | 639 | ||||||
| OTHER INCOME (EXPENSE) |
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| Interest expense |
(27 | ) | (13 | ) | ||||
| Interest income and other, net |
18 | 20 | ||||||
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| INCOME BEFORE INCOME TAXES |
659 | 646 | ||||||
| Provision for income taxes |
228 | 225 | ||||||
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| Net income including noncontrolling interests |
431 | 421 | ||||||
| Net income attributable to noncontrolling interests |
(6 | ) | (5 | ) | ||||
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| NET INCOME ATTRIBUTABLE TO COSTCO |
$ | 425 | $ | 416 | ||||
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| NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO: |
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| Basic |
$ | 0.97 | $ | 0.96 | ||||
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| Diluted |
$ | 0.96 | $ | 0.95 | ||||
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| Shares used in calculation (000’s) |
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| Basic |
437,970 | 433,423 | ||||||
| Diluted |
442,420 | 438,643 | ||||||
| CASH DIVIDENDS DECLARED PER COMMON SHARE |
$ | 0.31 | $ | 0.275 | ||||
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COSTCO WHOLESALE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in millions)
(unaudited)
Subject to Reclassifications
| November 24, 2013 |
September 1, 2013 |
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| ASSETS | ||||||||
| Cash and cash equivalents |
$ | 4,699 | $ | 4,644 | ||||
| Short-term investments |
1,740 | 1,480 | ||||||
| Receivables, net |
1,145 | 1,201 | ||||||
| Merchandise inventories |
9,337 | 7,894 | ||||||
| Deferred income taxes and other current assets |
552 | 621 | ||||||
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| Total current assets |
17,473 | 15,840 | ||||||
| Property and equipment, net |
14,254 | 13,881 | ||||||
| Other assets |
592 | 562 | ||||||
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| TOTAL ASSETS |
$ | 32,319 | $ | 30,283 | ||||
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| LIABILITIES AND EQUITY | ||||||||
| Accounts payable |
$ | 9,199 | $ | 7,872 | ||||
| Accrued salaries and benefits |
2,070 | 2,037 | ||||||
| Other current liabilities |
2,424 | 2,181 | ||||||
| Deferred membership fees |
1,240 | 1,167 | ||||||
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| Total current liabilities |
14,933 | 13,257 | ||||||
| Long-term debt, excluding current portion |
4,987 | 4,998 | ||||||
| Deferred income taxes and other liabilities |
990 | 1,016 | ||||||
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| Total liabilities |
20,910 | 19,271 | ||||||
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| Total Costco stockholders’ equity |
11,221 | 10,833 | ||||||
| Noncontrolling interests |
188 | 179 | ||||||
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| Total equity |
11,409 | 11,012 | ||||||
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| TOTAL LIABILITIES AND EQUITY |
$ | 32,319 | $ | 30,283 | ||||
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